Select from the Following the Incorrect Statement Regarding Contribution Margin

question 58

Multiple Choice

Select from the following the incorrect statement regarding contribution margin.

• A) Sales − Fixed costs = Contribution margin
• B) Net income + Total fixed costs = Contribution margin
• C) At the breakeven point (where the company has neither profit nor loss), Total fixed costs = Total contribution margin
• D) Total sales revenue times the contribution margin percentage = Total contribution margin

Understand the role of societal and technological pressures on business strategies and operations.

Learn about incremental and radical approaches to business process improvement.

Understand the basic concepts and components of manufacturing cycle efficiency (MCE).

Comprehend the use and significance of residual income and return on investment (ROI) in evaluating investment centers.

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